Pennsylvania SB 478: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in entertainment production tax credit, further providing for limitations.

Bill Text

PRIOR PRINTER'S NO. 441 PRINTER'S NO. 984
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 478
Session of
2025
INTRODUCED BY FARRY, PENNYCUICK, FONTANA, LAUGHLIN, TARTAGLIONE,
KEARNEY, STEFANO, PISCIOTTANO AND COLLETT, MARCH 20, 2025
SENATOR BROWN, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
AS AMENDED, JUNE 24, 2025
AN ACT
Establishing the Office of Employee Ownership within the
Department of Community and Economic Development;
ESTABLISHING THE EMPLOYEE OWNERSHIP ADVISORY BOARD;
establishing the Main Street Employee Ownership Grant
Program; and providing technical and financial assistance to
employee-owned enterprises.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Employee
Ownership Assistance Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"BOARD." THE EMPLOYEE OWNERSHIP ADVISORY BOARD ESTABLISHED
UNDER SECTION 7(A).
"Department." The Department of Community and Economic
Development of the Commonwealth.
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"Employee-owned enterprise." One of the following:
(1) A business that meets all ONE of the following
conditions:
(i) The business is organized as:
(A) an eligible worker-owned cooperative as
defined under 26 U.S.C. § 1042 (relating to sales of
stock to employee stock ownership plans or certain
cooperatives); or
(B) a corporation in which the employees own the
stock of the corporation through an employee stock
ownership plan, within the meaning of 26 U.S.C. §
4975(e)(7) (relating to tax on prohibited
transactions).
(ii) The following apply to voting rights and shares
of the business:
(A) A majority of the voting rights of the
business are held by employees and all employees who
have stock allocated to them are entitled to vote.
(B) Shares of the business are voted in such a
manner that the vote of the majority of the employees
of the business controls the vote of the majority of
shares.
(C) Voting rights on corporate matters for
shares held in a trust for the employees of the
business shall pass through to those employees, at
least to the extent required by the pass-through
voting requirements under 26 U.S.C. § 864(c)(4)(D)
(relating to definitions and special rules).
(iii) The majority of the members of the board of
directors of the business are elected by the employees.
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(2) A business that is organized in a manner determined
by the secretary to involve substantial employee
participation.
(3) An employee-ownership trust.
(4) AN EQUITABLE BROAD-BASED PROFIT-SHARING PROGRAM FOR
ALL EMPLOYEES DESIGNED TO ALLOW PURCHASE OF COMPANY SHARES AS
DIRECT EMPLOYEE OWNERSHIP.
"Employee-ownership group." A corporation or other entity,
including a labor union formed by or on behalf of the current or
former employees of an industrial or commercial firm or facility
located in this Commonwealth for the purpose of assuming
ownership or control of the firm or facility and operating it as
an employee-owned enterprise.
"Employee-ownership trust." Company stock or profit sharing
being held by a trustee on behalf of the company's employees
with employees receiving a percentage of ongoing profits or
401(k) retirement plans throughout employment without receiving
an equity stake in the company.
"Local administrative agency." An organization that enters
into a written agreement with the department to administer
technical and financial assistance under this act, including:
(1) A municipality.
(2) A local development district of the Appalachian
Regional Commission.
(3) A certified economic development organization
certified by The Pennsylvania Industrial Development
Authority under 64 Pa.C.S. § 1123 (relating to certification
of economic development organizations).
(4) A nonprofit economic development organization
designated by the secretary.
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"Office." The Office of Employee Ownership established under
section 3(a).
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
Section 3. Office of Employee Ownership.
(a) Establishment and purpose.--
(1) The Office of Employee Ownership is established in
the department.
(2) The office shall:
(i) Serve as an advocate for improving government
knowledge and support for well-designed, broad-based
profit-sharing and ownership stakes.
(ii) Increase awareness of how agency programs
affect companies with profit-sharing and ownership stake
programs.
(iii) Promote legislative or regulatory changes
necessary to ensure that government policies encourage
the adoption of existing and emerging sharing programs.
(b) Gubernatorial appointment.--Th